• Asia-Pacific Journal of Business
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• v.14 no.1
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• pp.351-364
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• 2023

Purpose - This study examines the effects of Dubai oil price and the volatility on the asymmetry of domestic gasoline price adjustment. Additionally, the study investigates the effects of "Altteul" gas-station and tax-cut policies on asymmetry. Design/methodology/approach - Firstly, the study calculates proxies for asymmetry and volatility of each window(every 3-month) by error-correction model and GARCH(1, 1) using daily domestic gas price and Dubai oil price from 2008/04/15 to 2022/12/31. Secondly, the study investigates the effects of the increasing rate of Dubai oil price, volatility, "Altteul" gas-station and tax-cut policies on asymmetry. The autoregressive distributed lag regression model is employed for estimations. Findings - The study finds that changes in the increasing rate of Dubai oil price and both types of volatility of Dubai oil price increase asymmetry. While "Altteul" gas-station and tax-cut policies decrease asymmetry. Additionally, the study fails to find that asymmetry in the Korean gasoline market in the estimation with total observations. Research implications or Originality - An increase in Dubai oil price volatility means an increase in cost uncertainty for gas-station owners. Since cost uncertainty is a kind of financial risk, the increase in volatility reinforces the asymmetry. The study provides supporting evidence for the idea.

• Journal of KIBIM
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• v.11 no.2
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• pp.43-53
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• 2021

The 'public agency oil joint purchase system' was introduced to lower public sector oil prices and contribute to the stability of the overall consumer oil market. The present study used spatial regression to analyze the factors affecting domestic gasoline price, focusing on the impact of potential implicit collusion among gas stations in determining domestic gasoline prices. Also, this study investigated the effect the location characteristics of the market convention gas stations and government offices on the pressure of price competition in the market and the gasoline price at general gas stations. To summarize the results of the spatial lag model (SLM), the individual characteristics of gas stations such as convenience stores (+), self-fuelling (-), commercial areas (+), subway stations (+), population density (-), and sales (-) are correlated to gasoline prices at gas stations, and the institutional location factors of gas stations (+) affected the average of 9 won per liter, 11 won per liter. In order to solve these problems, the establishment of a monitoring system reflecting the location characteristics of the region and the ongoing review of the system should be carried out. In addition, separate, expanded and promotional measures should be prepared for the convenience of general and public oil buyers.

• Environmental and Resource Economics Review
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• v.11 no.4
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• pp.525-556
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• 2002

This paper investigates effect of gasoline price liberalization on price elasticity of gasoline demand. By using a model where a consumer optimizes her gasoline consumption and number of visits to gas station, we derive price elasticity of gasoline demand and its response to variation of size and frequency in price changes. It shows that price elasticity is decreased with increase in the size and frequency when the price rises. Since price liberalization increases the frequency but reduces the size, the effect of the liberalization on the price elasticity may not be determined. However, price liberalization can make the elasticity higher when the size reduction effect exceeds the frequency increase effect, which is consistent with empirical evidence provided by existing studies.

• Plant Journal
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• v.14 no.1
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• pp.47-51
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• 2018

This study analyzed the effect of power output reduction in coal fired power generation on the change of system marginal price and green house gas emissions. Analytical method was used for electricity market forecasting system used in korea state owned companies. Operating conditions of the power system was based on the the 7th Basic Plan for Electricity Demand and Supply. This as a reference, I analyzed change of system marginal price and green house gas emission by reduced power output in coal fired power generation. The results, if the maximum output was declined as 29 [%] to overall coal-fired power plant, system marginal price is reduced 12 [%p] compared to before and decreasing greenhouse gas emissions were 9,966 [kton]. And if the low efficiency coal fired power plant that accounted for 30 [%] in overall coal-fired power plant stopped by year, system marginal price is reduced 14 [%p] compared to before and decreasing greenhouse gas emissions were 12,874 [kton].

• Journal of Energy Engineering
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• v.23 no.2
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• pp.83-92
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• 2014

This paper attempts to conduct a comparative analysis on the economic effects of integrated-energy and manufactured gas supply sectors. To this end, an input-output (I-O) analysis is applied using most recently published 2011 I-O table. In particular, the two sectors are specified as exogeneous to identify the economic effects on own and other sectors. Production-inducing effect, value-added creation effect, and employment-inducing effect are quantified based on demand-driven model. Supply shortage effect and price pervasive effect are analyzed employing supply-driven model and Leontief price model, respectively. The results show that production-inducing effect, value-added creation effect, and employment-inducing effect of integrated-energy and manufactured gas supply sectors are estimated to be 1.5461 vs. 1.0297, 0.4759 vs. 0.1941, and 2.2885 vs. 0.4053 respectively. Price pervasive effects of the 10% increase in integrated-energy and manufactured gas supply sectors are computed to be 0.0127% and 0.1585%, respectively. This information can be utilized in forecasting the economic effects of introducing integrated-energy or manufactured gas as a heating source and the impacts of a rise in price of integrated-energy or manufactured gas on price level of other sectors.

• Environmental and Resource Economics Review
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• v.17 no.2
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• pp.313-326
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• 2008

This paper is concerned with the effect of an increase in the import price of LNG on the Korean economy and industries. A computable general equilibrium analysis is applied to compute the comparative-statical effect of 10% rise of LNG price. The price increase places relatively heavy burden on the city gas, oil products and thermal power, decreasing their outputs and domestic sales by relatively larger percentages than other industries. The 10% increase in the LNG price reduces GDP by 0.4% and raises the general price level by 0.08%. The increase in oil price resulting in the same decreasing rate of GDP caused by the 10% LNG price rise turns out to raise the general price level and reduce the consumer's welfare in terms of equivalent variation by less percentage than the increase in LNG price.

• Journal of Energy Engineering
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• v.23 no.2
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• pp.74-82
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• 2014

The government is planning to expand the bio-gas supply as a method for mitigating greenhouse gas emissions to deal with climate change. By means of a policy instrument, the government is considering an introduction of the Renewable Fuel Standard (RFS) whose targets include bio-gas. This paper attempts to look into the economic effects of expanding the bio-gas supply by applying an input-output (I-O) analysis using a 2011 I-O table. The bio-gas supply sector consists of liquefied petroleum gas supply sector and city gas supply sector, based on the tenets of introducing the RFS. The production-inducing effect, value-added creation effect, and employment-inducing effect of the bio-gas sector are analyzed. The supply shortage effect and the price pervasive effect are also investigated. The results show that the production or investment of 1.0 won in the bio-gas supply sector induces the production of 1.0539 won and the value-added of 0.1998 won in the national economy. Moreover, the production or investment of 1.0 billion won, supply shortage of 1.0 won, and a price increase of 10.0% in the bio-gas supply sector touch off the employment of 0.5279 person, 1.6229 won, and an increase in overall price level by 0.0183%, respectively.

• Journal of the Korean Operations Research and Management Science Society
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• v.37 no.4
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• pp.73-93
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• 2012

In recent years, service delivery systems employing a self-service approach have been rapidly spreading. Since a self-service system provides a lower product price, it attracts more customers. However, some system managers are still hesitant to accept a self-service system, because there is no systematic model to predict its performance. Therefore, this research attempts to provide a systematic and quantitative model to predict the performance of a self-service system, focused specifically on a self-service gas station. Under this model, the traditional queuing theory was adopted to describe the general self-service process, but it is also assumed that some changes occur in both the customer arrival rate and the service performance rate. In particular, the price elasticity was introduced to capture the change in the customer arrival rate, and the existence of learning effect and helpers were assumed to design the changed service performance rate. Under these assumptions, a simulation model for a self-service gas station is established, and three performance measurements, such as average number of customers, average waiting time, and Utilization are observed, depending on the changes in price difference and helper-operating time. In this research, the optimal operation strategy for price differentiation and helper-operating time is proposed in accordance with the level of the customer learning rate. Although this research confines the scope of the study to the self-service gas station model, the results of this research can be applied to any type of self-service system.

• Journal of Korean Society of Transportation
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• v.32 no.1
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• pp.13-26
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• 2014

Depending most of its energy sources on foreign countries, Korea efforts to reduce energy consumption in transportation. While studies on the relationship between gas price and transportation demand are many in number, most previous studies have focused on automobile and Seoul. This study analyzes the impact of gas price on transit (bus and subway) demand using monthly data and for various metropolitan areas (Seoul, Busan, Daejeon, Daegu and Gwangju). The research utilizes a time-series model and a multiple regression model, and calculates modal demand elasticities of gas price. The result shows that elasticities of subway demand with respect to gas price is higher than those of bus demand. In addition, elasticities of predominantly automobile cities are more likely to be more sensitive to gas price than those of cities with well-structured transit system.

• Environmental and Resource Economics Review
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• v.11 no.2
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• pp.261-278
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• 2002

Based on the hedonic pricing method, this paper investigates the effect of air quality on the apartment price in Seoul. The empirical results show that both the structural variables such as years of construction, heating system, and size of apartment complex and accessability variables such as distances to subway station and parks provide statistically significant effects on the price of apartment, Especially, the dendity of sulfurous acid gas ($SO_2$) and ozone ($O_3$) in the air, indicating air quality, negatively affect the price of apartment, This implies that as the condition of air quality to become worse, apartment price decreases, Therefore, when the degree of aversion of apartment residents against the air pollution affects the formation of apartment's market price, the MWPT(Marginal Willingness to Pay) in order to improve the air quality 10% has been estimated as 36,000~39,000Won per month.